More viewers are cutting the cord in favor of cheaper streaming packages. But Alphabet's YouTube (GOOG, GOOGL) has found success by imitating the one thing consumers seem to be abandoning.
YouTube TV is an Internet pay TV service that first launched in 2017, allowing viewers to watch live channels and access local broadcast networks such as ABC, CBS, FOX, and NBC. Since then, its breadth of content and low prices have been realized. Prices above $70 per month are attractive to consumers looking for a cheaper alternative to a cable package.
“We've heard from our users that they want to be able to watch all of their favorite content in one place, and they want to be able to manage all their subscriptions in one place,” says YouTube Product Management. said Christian Oestlien, Vice President. he told Yahoo Finance. “There is a bit of subscription fatigue.”
YouTube, which also includes major digital platforms, broke records for the 13th consecutive month as the most-watched streaming service on TV screens in February, according to Nielsen's latest TV viewing report.
In total, YouTube soared to a platform-high 9.3% of total U.S. TV viewing, up from 7.9% a year earlier. It was also a significant win compared to Netflix's 7.8% market share.
Broadcast and cable continue to decline year over year, with their combined share of total TV viewing now at 50.9%, down from 54% in February 2023.
This is a significant feat for YouTube, given the fragmented media landscape.
According to Deloitte's latest Digital Media Trends Report, U.S. consumers subscribe to an average of four streaming services and spend about $61 per month. Additionally, 68% of consumers surveyed pay for either a TV subscription or a live streaming TV plan to access channels that are not available via streaming.
YouTube TV is capitalizing on that demand.
The platform, priced at $72.99 per month, recently surpassed 8 million subscribers and is currently the largest pay TV streamer on the market. Disney's Hulu + Live TV (DIS), which costs $76.99 per month, is the next closest competitor, with 4.6 million subscribers as of the quarter ending Dec. 30.
“We have the ability to deliver that complete experience,” Ostrien said, citing not only the success of YouTube TV but also the platform's digital expansion with features such as Instagram Reels and TikTok competitor YouTube Shorts. He also mentioned the popularity of the division and the popularity of viral videos. Content creators like Mr. Beast. “I think it resonates with consumers,” he said.
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